New high-rise condos in works in Gulf Shores and Orange Beach

Before the end of the year, construction could begin on two new condominium towers on Baldwin County's beaches -- a 23-story, 97-unit building in Orange Beach and a 22-story, 80-unit project on Gulf Shores' west beach.

That high-rise development would end a long drought of new Gulf-front condo projects on Alabama's coast that followed the real estate market collapse in the mid-2000s and subsequent Great Recession.

Things have slowly improved since the downturn, however, and two local developers are the first ones willing to dive back into the condo market.

Rick Phillips of Gulf Shores has been marketing his 23-story project, Junonia Beach Resort, for at least eight months through his company, Southern Advantage Real Estate.

In March 2013, he received site plan approval from the Orange Beach Planning Commission to move ahead with a 21-story, 116-unit project but he revised the plans with the board's approval in October.

The tower would be built on Perdido Beach Boulevard next to the Hampton Inn & Suites, across from the Publix shopping center.

View full sizePreliminary drawing of Phoenix Gulf Shores, which is subject to change. (Courtesy Brett/Robinson)

In Gulf Shores, Brett/Robinson Real Estate and Development Co. has begun preselling for Phoenix Gulf Shores. The 22-story tower would be the Orange Beach-based company's 20th condo project, having just completed the 32-story Phoenix West II.

While Brett/Robinson has not had the project formally approved by the Gulf Shores Planning Commission it is moving toward that with plans to close on property, zoned for high-rise condos, on West Beach Boulevard, according to Bill Brett of Brett/Robinson. The site is across from Pier 33 Groceries, just before the road split with West Lagoon Avenue.

The project's viability, as with all Brett/Robinson condos, was based on preselling enough units through all-cash deals to help purchase the land and start construction. The units range in price from $495,000 for three bedrooms to $625,000 four bedrooms, according to Brett.

With 17 units sold, as of Thursday, Brett said that's enough to move ahead. Closing is set for the end of June and then all the plans will be formally presented to the Gulf Shores planning board for approval.

View full sizePlanned site of Phoenix Gulf Shores on West Beach Boulevard. (Courtesy Brett/Robinson)

The project has a 30-month build schedule, according to Brett. With the city's approval and all the proper permitting in place, the company -- which will also construct the project -- hopes to get started 60 to 90 days after the closing.

"It'll be 20 floors of condo plus two common-area floors, so 22 floors, and six or seven floors of parking," Brett said. "We really honed in on pricing and features that buyers are looking for so these condos are a little smaller than what we've done at West II but with bigger balconies and things like that. So it'll be a nice project."

With Junonia's prices ranging from $575,000 for three bedroom/three bath units to $725,000-$750,000 for four bedroom/four bath units, Phillips has two sold with six pending and 31 reserved.

The 23-story project includes three lower-level floors used for common areas and parking. The bottom floor will feature an indoor/outdoor lazy river as well as an indoor pool.

The construction process will not start until 65 units are presold. "I think by the end of the summer, August-September somewhere along there, we'll have attained our presale goal," Phillips said.

He said it would take some time to get the project bid out after hitting the presale mark and construction would take between 18 to 20 months.

Phillips said he decided to make the leap back into the new condo market after closely watching inventory trends.

"We just witnessed over the last several years some dynamics that were taking place as it relates to the beach front and it was that inventory has dwindled considerably and the sales level has also picked up considerably, which we feel like has created a demand for preconstruction, new construction, brand new units," Phillips said. "And we're hoping our timing is right on the money."